South Indian cotton yarn market may see bearish trend till mid-Feb

08 Feb '22

3 min read

Pic: shutterstock.com

Cotton yarn prices remained steady in southern and western India’s markets as demand from downstream industry continued to remain bearish. According to traders, demand is not likely to improve before mid-February. Once the fabric manufacturers exhaust their yarn inventory, they will need to buy new yarn, and demand will improve at that time.

In western indian city of Mumbai, spinners quoted higher prices, but no trade materialised at those rates, so effective market prices hovered near previous levels. A broker from Mumbai told Fibre2Fashion that mills have increased their selling prices by ₹3-5 per kg as their production cost moved up due to costlier cotton. But there was no trade at higher prices.

In Mumbai, since the spinning mills have increased yarn prices by ₹3-5 per kg, the gap between mills’ offer prices and market prices widened. In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,930-1,990 per 5 kg and ₹1,670-1,730 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,860-1,900 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was traded steady at ₹1,720-1,740 per 5 kg.

The knitwear hub of Tiruppur also witnessed steady trend in cotton yarn with bearish tone as demand was very weak. According to market sources, exporters were buying cotton yarn in limited quantity, which was not enough to improve market sentiments.

Cotton yarn 30 count combed variety was traded in Tiruppur at ₹365-375 per kg, 34 count combed at ₹375-385 per kg and 40 count combed at ₹400-410 per kg. Cotton yarn of 30 count carded was sold at ₹325-335 per kg, 34 count carded at ₹330-340 per kg and 40 count carded at ₹350-360 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

Meanwhile, ZCE cotton yarn May 2022 futures traded lower by CNY 235 at CNY 29,140 per ton and September 2022 traded down by CNY 250 at CNY 28,480 per MT today. ICE cotton futures closed with mixed session on Monday, while attention shifted to USDA’s monthly supply and demand report due later this week. Cotton contract for March 2022 closed at 125.57 cents, down 117 points; May 2022 closed at 123 cents, down 99 points; December 2022 closed at 104.43 cents, up 62 points.

In Gujarat, 29 mm cotton was traded at ₹77,500-78,000 per candy of 356 kg each. A grade cotton was sold at ₹77,500-78,000 per candy, B grade variety at ₹76,000-77,000 per candy and average grade cotton at ₹75,500-76,000 per candy. Cotton of the V797 variety was quoted at ₹50,000-51,000 per candy.

Fibre2Fashion News Desk (KUL)

More Textiles News - India...